(RTTNews) - Gold dipped toward $4,700 an ounce on Tuesday as the U.S. dollar index climbed above 98.00 due to rising geopolitical tensions linked to the Iran conflict.
Spot gold fell 0.7 percent to $4,702.72 an ounce as stalled U.S.-Iran peace talks pointed to a continued closure of the Strait of Hormuz and investors priced out Federal Reserve rate cuts this year. U.S. gold futures were down 0.4 percent at $4,711.25.
The dollar extended gains for a second straight session, bonds remained under pressure and Brent crude prices climbed above $107 a barrel as investors monitor the latest developments in the Middle East war and awaited the release of April's U.S. consumer price index reading later in the day for directional cues.
Reports on U.S. producer prices, retail sales and industrial production due later in the week may also provide fresh insights into the impact of recent spike in oil prices on inflation and consumer spending.
U.S. President Donald Trump will travel to Beijing this week for summit talks with his counterpart Xi Jinping, with issues related to Iran, tariffs, artificial intelligence, Taiwan and critical minerals agreements on the agenda.
On the geopolitical front, President Trump said the fragile ceasefire between Washinton and Tehran was on "massive life support," raising fresh doubts over the chances of a lasting truce.
Trump called Iran's response to his peace proposal a "piece of garbage" and said he "didn't even finish reading it."
Saudi Aramco officials have warned that even if the Strait of Hormuz blockade ended immediately, global oil markets may not fully stabilize until 2027.
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